Hulbert: Why the Worst is Yet to Come

Bad news: The bottom of the decline that began one month ago has not yet been seen. MarketWatch columnist Mark Hulbert joins MoneyBeat.

This transcript has been automatically generated and may not be 100% accurate.

... see there the SNP five hundred over last month ... on the wrong direction if you're investing in ... a note from the upper left and the lower right hand corner ... I've been a rough month the stock market I'll have to tell you that in times like these ... tend to chase out the Ball ... bought ... gold bulls have not been chased so far that raises the issue ... is worse to come to them and they cling ... to their bullishness Mark Hulbert joins us here in DC a mark to love traveling ... ahh are the bulls still too bullish ... did did he said ... the number of goals has retreated in recent weeks as the market turbulence is scared member of the way the issue isn't whether there ... been a pullback imposes but with its been a big enough pullback ... to allow contrary to say that the Wall of Worry is in ... sufficient detail to allow the bull market to recover and I don't think it is ... what I do and then today's column as I compare the recent pullback of all this this to the pullback has occurred ... at the beginning of past beer markets now I should say that that's a comparison designed ... to make the recent pullback look to be bigger than usual which it didn't sink American trade for you because after all ... Econtrarian pattern at other bull market tops has been ... for a stubbornly held lists for a lot of reticence of the posts from throwing the towel ... on for Chile even with this fairly easy lay out a comparison that I thought was going to show that has been that of a pullback ... or leased to take a bigger than the average pullback ... we're not saying it was back on average pullback outlook is never different sentiment indicators ... is the only about half as a ... as it was the beginning of class a pass to bear markets the first month or so what's fair Oaks last to ... say three or four decades with the bear market so it's not very good omen and attention to the relative to the question of ... is this just the sort of small minor pullback or is this really a turning point ... a lot of people in them and the SNP daily down five percent I mean maybe even not buy present which means gains ... ah you seen a lot of damage overseas China Japan but not so much here ... which is leading a lot to say this is just a minor pullback ... well that's right if you go back to lunch and it's very hard to start going through history and identify every time the market has come back five percent but if you look at those corrections ... the typical path ... it's for a fight this run at almost falling over themselves to get the ax is the hallmark of a correction ... is for people to believe it's the beginning of a bear market that's the contrary case after all ... the beginning of their markets is one that is ... the isthe confronted by disbelieved people say none of this is just a pause that refreshes ... and Sport chalet that's the very time that the market has to pull back even further ... in order to trade at foundation of the ball worries that the market can recover and on for Chile ... I think we're seeing more of the latter don't we don't necessarily know how much further the market has to go down ... to provide a foundation might be that we have a couple more pretty big and they scare people of Nephi so in the Dow ... added to the relatively mild if we see a lot of the stubbornly held bullishness reticence to throw in the towel ... it may mean that we need to have a bigger pullback in order to treat the poll were ... more how long you think it'll be before will know this ... when you ... get a content analysis did Chinese to afford a certain that question is ... it just is as the market in the end of all tell the story we can look on a daily basis with our set of adventures ... as we have people thrown in the towel and updated maybe ... we can come back a week from now isn't well we finally got a job or it's a no Keisha ... were ninety minutes that were not given up the standards of past bear market began ... which of course is a very bad ... by comparison anyway back to ... recruits are we just don't know but we don't have to know because we can look at it on a day-to-day basis see lead Intel to store ... high MarketWatch columnist Mark Hulbert thank you very much ...